The Czech Republic will have to prepare for a significant reduction in EU funding in the coming years. The country could lose up to half of the funds it has previously received. In light of declining subsidies, attention is turning to new national priorities such as defence, education and infrastructure.
Over the next few years, the Czech Republic will need to adapt to a significant reduction in European funds. During its time as a member of the European Union, the country has closed the gap in living standards compared to the EU’s 27 Member States. Going forward, EU funding should be increasingly focused on less developed member states.
According to a report by the news channel ČT24, the Czech Ministry of Regional Development estimates that the country could lose up to half of its current funds in the next funding period. This concerns a sum of over CZK 260 billion. “We expect that the allocations for the Czech Republic will decrease by thirty to fifty per cent. This means that we will have to target these funds more specifically to benefit the Czech Republic. Nevertheless, we should remain – and we assume this will be the case unless there is an enlargement – a net recipient,” explained Stanislav Schneidr, Director-General of the Department for the Coordination of European Funds at the Ministry of Regional Development, to the news channel.
Since joining the EU, the country has received more than CZK 2 trillion from EU funds, while contributing just under CZK 940 billion to the EU budget. The country’s overall balance is therefore positive by more than CZK 1 trillion. In the current funding period, the state has nearly CZK 530 billion at its disposal, of which CZK 100 billion has already been paid out to recipients. In total, nearly 24,000 projects have been approved.
Thanks to EU funding, 710 ambulance service sites have so far been built or modernised, and more than 600 monuments have been restored. Roads, motorways, railway lines and cycle paths have also been expanded – covering a total of almost 8,400 kilometres.
Defence, transport and social services
The Czech Republic’s future priorities are already emerging. The state intends to use European funds in future for transport, energy, education and innovation, defence, and social services. However, even in these areas there will be less money available.
Government representatives are currently negotiating at both national and European level on the future direction of cohesion policy. A final overview of the key areas where Czech politicians believe EU funds should be directed from 2028 onwards is due to be presented to the government by the end of June. The European Commission will then publish its proposals in the summer.
